Macroeconomics & International Finance Seminars

Spring 2017

Tuesday 1:403:00 p.m.
499 Engineering II

Ivalina Kalcheva, UC Riverside
"Make and Take Fees in the U.S. Equity Market"
Host: Eric Aldrich
ABSTRACT: We study the effect of liquidity-based trading fees charged by the U.S. stock exchanges, on market outcomes for the period 2008-2010. Our exchange-level analysis reveals that an exchange's trading volume is decreasing in its net fee, relative to the net fee of other exchanges. Further, an increase in the take fee decreases trading volume relatively more than an increase in the make fee. At the exchange level, these changes in trading volume are not accompanied by changes in quoted or net-of-fees spreads.

June 6
Bill Branch, UC Irvine
Host: Hikaru Saijo